FINANCIAL LITERACY AND THE IMPORTANCE OF ...fae.uprrp.edu/cicia/wp-content/uploads/sites/13/2018/02/...FINANCIAL LITERACY AND THE IMPORTANCE OF RETIREMENT PLANNING IN PUERTO RICO Research

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University of Puerto Rico

Río Piedras Campus

Faculty of Business Administration

Department of Accounting

FINANCIAL LITERACY AND THE IMPORTANCE OF

RETIREMENT PLANNING IN PUERTO RICO

Research proposal by:

Karen C. Castro-González, Ph.D., CPA

Assistant Professor

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FINANCIAL LITERACY AND RETIREMENT PLANNING:

EVIDENCE FROM PUERTO RICO

Abstract

This study evaluates knowledge regarding financial and retirement planning in Puerto Rico.

Most people seem to be unprepared to take charge of financial decisions and retirement. Lusardi

and Mitchell (2006) study shows that many households are unfamiliar with even the most basic

economic concepts needed to make savings and investment decisions. They found that this is not

a matter of age. This study uses a questionnaire to evaluate financial knowledge and retirement

planning in Puerto Rico. For the most part, this questionnaire was developed using Lusardi and

Mitchell (2007), Lusardi and Mitchell (2011a), Lusardi and Mitchell (2011b) questionnaires.

These studies have been published as a series of papers regarding financial literacy by the

Organisation for the Economic Cooperation and Development (OECD).

At this stage of the study, the results suggest a lack of knowledge in this matters, although

respondents answered they look for information regarding financial and retirement matters.

Most of them state that they prepare a household budget but when asked if they have covered

their living expenses during the past 12 months, most answered they have not. They had to cut

expenses or used part of their savings. Incongruous results are observed when asked about

savings. The majority answered they have saved in the last year. But when asked how long will

they be able to keep covering their living expenses if they were to lose their jobs, about 80

percent will be able to do it for less than three months. Many respondents are unfamiliar with

even the most basic economic concepts needed to make savings and investment decisions.

When asked about retirement, near 60 percent have tried to estimate the amount needed

for retirement but less than 50 percent of the respondents have tried to design a plan for their

retirement. Of those who have made plans, less than 40 percent have met their goals and only 14

percent are very confident that they will have enough resources at retirement.

Keywords: retirement planning, financial literacy

Introduction

In March of 2006, the Special Commission on Puerto Rico Government Pension Systems

published a report that describes how knowledgeable government employees are about the

services and benefits of the retirement system. Some questions in the survey asked whether the

employees knew about financial planning, pension benefits, social security benefits and health

costs during retirement. Between 64 and 79 percent of the employees assured they did not have

information about these matters. Years later, in October 21, 2010 the Commission on Puerto

Rico Government Pension Systems Reform submitted for the consideration of the Governor of

Puerto Rico a report on the situation of the Puerto Rico Government Retirement Systems. It

discussed issues such as the actual funding and cash flow situation, factors that are contributing

to the actuarial liability cash flow problem and their recommendations.

The members of the Commission included recommendations such as changes in the

employers and employees contribution requirements, modifications to special laws that enhanced

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retiree benefits, changes to the benefit structure and retirement age, to stop temporarily early

retirement programs, to modify personal and mortgage loans made against the retirement savings

funds, changes in governance and other ideas. Ironically, in the last section, the section called

“Other Ideas”, the commissioners recommended that education for retirement planning should be

given on a regular basis to employees.

This suggestion made clear that there is a need to educate people about retirement and

other financial matters. This study evaluates knowledge regarding financial and retirement

planning in Puerto Rico. First, past literature about the existence and effectiveness of retirement

planning programs in Puerto Rico, the United States and other countries are reviewed. Also,

studies presenting a model on how to evaluate knowledge concerning financial and retirement

planning was reviewed. Then, based on the results and suggestions of past studies, a

questionnaire was be design and distributed to the employees of the University of Puerto Rico-

Río Piedras to assess their knowledge in financial and retirement related matters. Based on those

results, a description on the level of knowledge is be presented and analyzed.

At this stage of the study, the results suggest a lack of knowledge in this matters, although

respondents answered they look for information regarding financial and retirement matters.

Most of them state that they prepare a household budget but when asked if they have covered

their living expenses during the past 12 months, most answered they have not. They had to cut

expenses or used part of their savings. Incongruous results are observed when asked about

savings. The majority answered they have saved in the last year. But when asked how long will

they be able to keep covering their living expenses if they were to lose their jobs, about 80

percent will be able to do it for less than three months. Many respondents are unfamiliar with

even the most basic economic concepts needed to make savings and investment decisions.

When asked about retirement, near 60 percent have tried to estimate the amount needed

for retirement but less than 50 percent of the respondents have tried to design a plan for their


percent are very confident that they will have enough resources at retirement.

The results and findings of this study can be used as starting point for a more

comprehensive endeavor, a study of the governmental and private sector employees‟ knowledge

about planning for retirement. The results of this study may help in the recollection of part of the

data that will serve as evidence to support or not the development of a personal finance education

project. If the results support the notion that there is a lack of knowledge in this regard among

Puerto Ricans, the possibility of developing education programs will be considered.

This proposal proceeds as follows: first, there is a presentation of the relevant literature

regarding this topic. Second, after the literature review, there is a description of the sample

selection procedure, data analysis and methodology. Finally, the conclusion and a list of

references are presented.

Related literature

Retirement Systems Evolution and Issues

This study is born out of real concerns regarding the future of retirement plans, especially in

Puerto Rico. There are five main groups of employees targeted separately under our retirement

systems: employees of the University of Puerto Rico, teachers working for the Department of

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Education of Puerto Rico, employees working for the Justice Department, employees working

for the Electric Energy Authority and the rest of the government employees.

The Employees Retirement System of the Commonwealth of Puerto Rico is a trust

created by Act 447 of May 15, 1951 to provide pension and other benefits to retired employees

of the government of Puerto Rico and its instrumentalities. Since its creation, this system and the

decisions made to maintain or improve its funding status have reflected a lack of appropriate

planning. On the one hand, the Center for the New Economy (CNE) (2010) argues that the main

problem has been that the level of employer and employee contributions has been relatively low

and was not actuarially determined. On the other hand, the level of benefits was statutorily

defined with no relation to employee contributions or to the investment yield of the systems

assets.

In a review of the decisions made throughout the years regarding the retirement systems,

the CNE summarizes part of the obviously wrong path that it was taking. In 1973 the benefit

structure was changed to increase benefits without enacting a corresponding increase in

contribution levels. Adding to this decision, during the next years the number of government

employees increased partly in response to the general economic slowdown. As a result, funding

levels began to decrease and deteriorate.

Almost two decades later, a decision that seemed to be going partially in the right

direction emerged. In 1990 the Puerto Rico legislature enacted Act 1 of 1990, it mandated a

reduction in some benefits (a decision that might be two-fold because it might diminish retirees

quality of life) and increased the retirement age from 55 to 65. Other changes also emerged, for

example Act 447 of 1951was amended to require that any future proposals to increase benefits

be supported by an actuarial analysis and to include a financing source for the benefits proposed.

These few changes prove to be insufficient and by the year 2000 the large accrued unfunded

actuarial liability of the system required a very difficult and not necessarily positive decision for

future employees.

The defined benefits plan was closed to new employees joining after January 1, 2000.

New employees will participate in a defined contribution plan known as System 2000. The

government will continue making contributions but are intended to fund the defined benefit

liability that has been accumulated. Under System 2000, the employees are funding the system

by themselves. This change transfers the risk from the employer to the employee. Those new

employees are at risk that the funds that will accumulate through their working years are

appropriately managed and invested to accumulate the amounts necessary to live during their

retirement. So, they bare the risk of accumulating sufficient funds or not. There are no

guarantees as to the amount they will receive at retirement. Hence the importance of saving and

managing other sources of funds wisely. Most importantly, to actively examine and pressure the

government in its role of deciding who manages those funds and effectively monitors the status

of the plan.

After the changes mentioned above the retirement systems can be described in three types

of plans. The first type is described in Act 447 of 1951 as a contributory and defined benefits

plan. This plan covers employees of the Government of Puerto Rico (excluding teachers),

employees of public corporations (except employees of the Puerto Rico Electric Power Authority

and the University of Puerto Rico), municipal employees and mayors, employees of the Puerto

Rico Police Department, employees of the Puerto Rico Fire Department, and irregular personnel

fulfilling the requirements of a regular employees, who were hired prior to April 1, 1990.

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The second type is described in Act 1 of 1990 as a contributory and defined benefits plan.

This plan covers employees of the Government of Puerto Rico (excluding teachers), employees

of public corporations (except employees of the Puerto Rico Electric Power Authority and the

University of Puerto Rico), municipal employees and mayors, employees of the Puerto Rico

Police Department, employees of the Puerto Rico Fire Department, and irregular personnel

fulfilling the requirements of a regular employees, who were hired on or after April 1, 1990 and

before January 1, 2000. This plan changes retirement age to 65 and modifies some benefits.

The third type, called System 2000, is described as a hybrid plan and defined contribution

plan. This plan covers employees of the Government of Puerto Rico (excluding teachers),

employees of public corporations (except employees of the Puerto Rico Electric Power Authority

and the University of Puerto Rico), municipal employees and mayors, employees of the Puerto

Rico Police Department, employees of the Puerto Rico Fire Department, and irregular personnel

fulfilling the requirements of a regular employees, who were hired on or after January 1, 2000.

These changes have proved to be insufficient since the system‟s unfunded actuarial

obligation continues to increase. Factors such as the continuous increase in the pensioner

population, the increased longevity of beneficiaries, and the fact that incoming pensioners have

higher salaries and are entitled to even higher annuities, negatively impacts and neutralizes any

measures taken to battle the funding problem of the systems. The future of the system seems

gloomy and the government seems to go in the wrong direction. It is important for government

employees to understand the characteristics of the system, how it works, its status, the

alternatives to improve its situation and also other alternate plans that they can put into action in

case their future pension proves to be inadequate to fund their retirement living expenses.

Financial Literacy and Retirement Planning Programs

Studies have found that retirement planning is lacking among different groups. Not just among

Puerto Ricans but among people around the world. Most people seem to be unprepared for the

future. Lusardi and Mitchell (2006) study shows that many households are unfamiliar with even

the most basic economic concepts needed to make saving and investment decisions. They found

that this is not a matter of age. Young and older people in the United States and other countries

appear inescapably under informed about basic financial computations necessary to make

savings, retirement planning, mortgages and other decisions. They also point out that

governments and non-for-profit organizations are starting to play an important role in developing

initiatives regarding financial education.

In a recent study Lusardi and Mitchell (2011a) report on a purpose-built survey module

on planning and financial literacy for the Health and Retirement Study. It measures how people

make financial plans, collect the information needed to make these plans, and implement the

plans. They show that there is a lack of knowledge among older Americans. Women, minorities

and the least educated tend to be the most lacking but the financially savvy are more likely to

plan and succeed in their planning. They found that this last group relies on formal methods

such as retirement seminars, retirement calculators and financial experts not family or co-

workers.

Using the National Financial Capability Study, Lusardi and Mitchell (2011b) examine

financial literacy in the United States by ethnicity and demography. They demonstrate that

financial literacy is particularly low among the young, women, and the less-educated. Two

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groups, Hispanics and African-Americans score least well on financial concepts. Interestingly

enough, before answering the study‟s questions, these groups assured they had vast knowledge in

financial matters. In addition, the authors found a relation between higher scores and the

probability of retirement planning.

In an earlier study they also found similar results but for older groups of women. Lusardi

and Mitchell (2008) examine the level of financial literacy in women and how they plan for

retirement. They found evidence that shows that older women demonstrate much lower levels of

financial literacy than the older population as a whole. Also, women who are less financially

educated are less likely to plan for retirement and be successful planners.

As for other countries, Bucher-Koenen (2011) examines financial literacy in Germany.

Results seem similar. They found that knowledge of basic financial concepts is deficient among

women, less educated, and those living in East Germany. Compared to West Germans, East

Germans have little financial literacy, especially those with lower income and low education.

Differences based on gender were not observed in the East. They also found a positive impact of

financial knowledge on retirement planning. Alessie, Lusardi and Van Rooij (2011) results for

the Netherlands concur. Also, Almenberg and Säve-Söderbergh (2011) found similar results for a

study conducted in Sweden.

The current state of the economy and its impact on future retirees raises concerns about

financial planning and security, but especially for those who are not aware of the implications

that it may have in the future and how to address them today. For this reason other studies

examine financial literacy and retirement planning programs structures and effectiveness.

Hathaway and Khatiwada (2008) provide a comprehensive critical analysis of past studies

that examine the impact of financial education programs on consumer financial behavior. Of

what they examined, they recommend that for these types of programs to be highly targeted

towards a specific audience and area of financial activity (e.g. credit card counseling, retirement

planning). About the timing of this training, they suggest it should be offered before the related

financial event. Finally and as an integral part of any developed program, they suggest a

program evaluation and for it to be included as part of the design of the program.

Lusardi and Mitchell (2007) introduce a new dataset called the Rand American Life Panel

that offers a set of features for the analysis of literacy and retirement planning. It helps in

assessing financial knowledge during workers‟ prime earning years. This period might be

characterized key financial decision making. So they offer detailed financial literacy and

retirement planning questions to better identify or asses their financial knowledge. An important

finding is related to financial literacy as a key determinant of retirement planning. Adding to this

finding, respondents that were exposed to economics in school and to company-based financial

education programs seem to have a better understanding of retirement planning than other

respondents.

Garman, Kim, Kratzer, Brunson and Joo (1999) found that employees who attended

financial education workshops sponsored by the employer reported positive changes in their

financial behavior and stated that their financial decision making had improved. Accordingly,

Martin (2007) reviews past literature on the effectiveness of financial education. The author

found that in general financial education is necessary and that the programs available at the time

were effective. The findings suggest that some households make mistakes with personal finance

decisions, specifically, low income and less educated households. The author identifies areas

that benefit of financial education and that include retirement planning, savings, homeownership,

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and credit use. In particular, they expand on the importance of stressing financial planning for

retirement because of the impact or implications and changes to defined contribution plans.

Schuchardt, Hanna, Hira, Lyons, Palmer and Xiao (2009) discuss what financial literacy

and education research priorities should be. Along with twenty-nine scholars from public and

private universities, non-for-profit organizations, and the federal government participated in

identifying critical research questions that could inform outcomes-based financial education,

relevant public policy and effective practice leading to personal and family financial literacy.

Huston (2010) outlines the meaning and measurement of financial literacy and its limitations to

assist researchers in determining or creating a standardized financial literacy and measurement

instruments.

Dvorak and Hanley (2010) designed and administered a financial literacy test designed

specifically for a particular contribution plan and found that participants show fairly good

knowledge of the basic mechanics of the plan but are unable to differentiate among various

investment options. Specifically, women, low income and low education employees were the

most deficient. Apparently, personal contributions lead to more knowledge. Finally, they

suggest that plans should be design with few investment options and encourage personal

contributions.

Stawski, Hershey and Jacobs-Lawson (2007) examine the extent to which goal clarity and

financial planning activities predict retirement savings practices. The models used, path analysis

techniques, were design to predict savings contributions. The results support the notion that

retirement goal clarity is a significant predictor of planning practices, and planning, and as a

result, helps predict savings tendencies. Age and income were found to be important variables.

They suggest age-based models may be useful for retirement planning.

Elder and Rudolph (1999) examine the level of satisfaction of retired individuals that

spent time thinking about retirement and attended retirement planning seminars during their

productive years. The evidence suggests that it had a positive impact on satisfaction even when

income, wealth, marital status and health are included as explanatory variables.

The importance, effectiveness and the appropriate design of financial and retirement

planning seminars or workshop might be supported by past studies. They concur in that there is

a lack of knowledge about basic financial concepts appropriate for healthy retirement planning.

Based on these results, this study expects to find similar results for Puerto Rico.

Research design

Sample and Proposed Methodology

One of the main objectives of this study is the assessment of financial literacy in Puerto Rico.

This study required the collection of data regarding peoples‟ knowledge about basic financial

and retirement matters. As a consequence, a questionnaire was design. It included the necessary

questions for discovering how knowledgeable people are about financial concepts and retirement

planning.

As a starting point in evaluating the degree of knowledge among Puerto Ricans, the

intended audience was composed of the employees of the University of Puerto Rico-Río Piedras

(UPRRP). A random sample of 300 out of 3,133 employees was selected out of the total number

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of employees working for the campus at the moment. At this point of the study 146

questionnaires have been tabulated and the rest is in the process of being collected and tabulated.

Regarding the questionnaire, some of the studies mentioned above (Lusardi and Mitchell

2007, Lusardi and Mitchell 2011a, Lusardi and Mitchell 2011b) offer some guidelines as to the

appropriate questions that should be included in this type of questionnaire. These studies have

been published as a series of papers regarding financial literacy by the Organisation for the

Economic Cooperation and Development (OECD). After choosing these questions and

designing the instrument, it was submitted for to the approval of the Institutional Review Board

of the UPRRP (Comité Institucional para la Protección de Seres Humanos en la Investigación or

CIPSHI).

The questionnaire consists of 37 questions. It includes 11 questions that are used to

design a profile of the participants, 17 questions regarding their knowledge about general

financial matters and 9 questions related to retirement and retirement planning.

These questionnaires were handed to employees personally. After collecting the

questionnaires, they were tabulated and the results were summarized for the purpose of analysis.

The next section describes the sample and discusses the results.

Results

Sample description

A total of 146 questionnaires were tabulated at this point of the investigation. Out of the people

surveyed, 25.5 percent are men and 74.5 percent are women. When they were asked about how

they describe the community they live in, 34.9 percent answered that they live in a city that has a

population between 100,000 and a million inhabitants; 20.5 percent lives in a town with a

population between 15,000 and 100,000 people; 16.4 percent lives in a rural area that has less

than 3,000 inhabitants; 11 percent lives in a city that has more than a million inhabitants; 6.8

percent lives in a town that has between 3,000 and 15,000 residents; 5.5 percent answered they

do not know how to describe the place where they live; and 4.8 percent refused to answer.

About 39 percent of the sample is married, 32.2 percent is single, 17.1 percent is

separated from their spouse or divorced, 6.2 percent has a partner, 0.7 percent answered they do

not know their marital status and 4.8 percent refused to answer this question.

Regarding their household composition, 64.4 percent of the households have 0 members

under 18 years old; 15.8 percent have 1 member under that age; 12.3 percent have 2 members;

2.7 percent have 3 members and 4.8 percent refused to answer. When asked how many members

are more than 18 years old, including their spouse or partner, 15.7 percent of the households

have 0 members over 18 years old; 31.5 percent have 1 member under that age; 28.8 percent

have 2 members; 17.8 percent have 3 members; 2.7 percent; 17.8 percent have 3 members; 2.7

percent have 4 members; 0.7 percent, respectively have 5 and 6 members; and 2.1 percent

refused to answer. On average, these households are composed of 2 to 4 people.

The average age of the people surveyed is 43.3 years old. About 13.7 percent is between

20 and 29 years old; 17.1 percent is between 30 and 39; 26 percent is between 40 and 49; 34.2

percent is between 50 and 59; 2.1 percent is between 60 and 69; and 0.7 percent is between 70

and 79. Some refused to answer this question, 4.8 percent. Others left it blank.

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In terms of educational level, most of the sample has a bachelor‟s degree, about 42

percent. About 24 percent has a master‟s degree, about 11 percent has a doctorate, 1.4 percent

finished high school and has technical or vocational education, 4.9 finished high school, the rest

of the sample refused to answer, left it blank or their response was irrelevant as for this question.

The majority of the sample, almost 69 percent, owns the house they live in, either by

themselves or jointly with their partner. About 22 percent of the people surveyed lives in a

house that is owned by their parents, grandparents or other member of their family. About 4

percent lives in a rented house, 1.4 percent lives in a house that there are planning on buying, 0.7

lives in a house that is not owned by a family member, government, employer or a private owner.

The rest of the sample refused to answer.

Concerning their main source of income, 84 percent considers salaries or wages as their

main source; 5.5 percent from salaries, wages and pension or retirement funds; 2.7 percent

pensions or retirement funds; 1.4 percent from their business or from self employment; 1.4

percent from other sources; 0.7 percent from government subsidies; the rest of the sample left it

blank or refused to answer.

Question 30 asked about the number of years left for the respondents to retire. On

average, they can retire in 13.2 years. About 14 percent can retire between less than a year and 5

years. Almost 7 percent can retire between 6 and 10 years from now. About 25 percent can

retire in between 11 and 15 years. Approximately, 34 percent can retirement between 16 and 20

years, 9 percent in between 21 and 25 years, 0.7 can retire between 26 and 30 years from now

and 1.4 percent in more than 30 years. The rest chose not to answer. Interestingly, three

respondents answer that they will never retire. This can be interpreted as an answer that reflects

real financial needs and that for that reason they will not be able to retire.

The next two sections present the results for questions related to financial literacy and

retirement planning. For the complete version of the questionnaire and the results, please see the

Appendix.

Financial literacy questions

The questionnaire included 17 questions related to general financial knowledge. The questions

that are included in the survey are related to household budget, knowledge, ownership and

selection of financial products, conduct and attitude towards financial decisions, expense and

debt management, savings and financial calculations.

First, in question 6 participants were asked about who was responsible for making daily

financial decisions in their household. Around 40 percent indicated that they make those

decisions by themselves and 39 percent make decisions with their partner. About 11 percent

make those decisions with a family member other than their partner, almost 9 percent answered

that other members of the household make those decisions and 0.7 percent answered that other

people make those decisions. The majority of the respondents either decide by themselves or

with a partner.

Then, in question 7, participants were asked if they have a family budget. Near 64 percent

states they have a family budget. However, about 31 percent do not have one. Some of the

participants, 3.4 percent, do not know if they have a budget and the rest refused to answer.

Questions 8, 9 and 10 ask questions regarding knowledge, ownership and selection of

financial products. Question 8 asked if the participant has heard of any of the financial products

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that were in the list (e.g. pension fund, mortgage, bonds, stocks, and others). About 72 percent

of the participants have heard of pension funds, near 75 have heard of mortgages, about 82

percent knows about credit cards, savings accounts and cellular phone accounts, about 80 percent

have heard about checking accounts, about 77 percent about insurance accounts and 73 percent

knows about non-bank financial loans. Near 63 percent have heard of prepaid cards and

between 50 and 60 percent of the sample have heard of loans with collateral (other than home

mortgages), loans without collateral, corporate stocks and bonds. Concerning investment

accounts, such as trusts, only about 47 percent have heard about them.

Question 9 asked about ownership of any of these instruments. Near 80 percent have a

checking account and a cellular phone account. About 69 percent have a savings account and 66

percent have a credit card. Near 54 percent have a mortgage and/or insurance account. About

43 percent have a pension fund. Near 18 percent have shares in a business and about 8 percent

owns bonds. In regards to the other financial instruments less than 12 percent of the participants

own them.

Question 10 inquired if they have owned or chosen these financial products in the past two

years. About 42 percent has chosen or owned a cellular phone account. About 30 percent has

chosen or owned a credit card, savings or current account. About 21 percent has chosen or

owned a mortgage or an insurance account. Around 10 percent of the participants has owned or

chosen the rest of the products in the list.

Question 11 asked how the participants would describe the way they chose the financial

products listed in questions 8 through 10. Most of them, about 62 percent, considered different

alternatives from different institutions or companies. About 14 percent considered different

products offered by one institution, near 7 percent did not considered product alternatives, 0.7

percent did not find other products that could have been considered and 4.8 did not know the

answer. The rest of the participants refused to answer, answered that the question did not apply

or left it blank.

Question 12 asked the participants about information sources that influenced their decisions

the most. About 50 percent of the participants were influenced by newspaper articles. Near 45

percent states that family or friends that are not working for financial institutions influenced their

decisions. About 44 percent were influenced by a representative working for the financial

institution selling those products. Near 43 were influenced mostly by newspaper advertisement.

Between 29 and 33 percent of the participants answered that radio and television programs,

information found in the Internet about the best financial instruments, information obtained at the

branch and guidance from family or friends that are working for financial institutions, influenced

their decisions.

Question 13 tries to assess the participant‟s conduct and attitude towards financial

decisions. They are presented 8 statements and were required to indicate the degree of

agreement with the statement. The participant was given a range or score from one to five, one

meaning “completely agree” and five meaning “completely disagree”. About 77 percent agrees

with the statement: “Before I buy something, I carefully consider if I have enough money to buy

it”. Only 1.4 percent completely disagrees with it. About 49 percent completely disagrees with

the statement: “I live in the present; the future will take care of itself”. Only 6.2 percent

completely agrees with it. More than 47 percent completely disagrees with the statement: “I

prefer to spend my money than saving it”. Only 4.1 percent completely agrees with it. About 74

percent agrees with the statement: “I pay my expenses and debts on time”. Only 4.1 percent

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completely disagrees with it. About 36 percent completely disagrees with the statement: “I am

ready to risk my money saving or investing”. Near 14 percent completely agrees with it. ”.

About 60 percent agrees with the statement: “I paid attention to my financial matters”. Only 2.7

percent completely disagrees. Near 32 percent agrees with the statement: “I establish financial

goals for the long-term and I try to reach them”. Only 8.2 percent completely disagrees. About

37 percent completely disagrees with the statement: “Money exits to spend it”. About 10 percent

completely agrees with it.

Questions 14 and 15 asked about expense and debt management. When the participants

were asked if they consider that their income is not sufficient to cover their living expenses and

if they have been in the situation of not being able to cover them in the past 12 months, about 64

percent answer “YES”. About 28 percent did not agree and 2.7 percent did not know. The rest

of the participants refused to answer, left it blank or their response was irrelevant. Then, in

question 15, they were asked how they dealt with the most recent situation in which they were

not able to cover their basic needs. About 67 percent cut their expenses or do not incurred in

those expenses, 35 percent used their savings to cover them. Near 29 percent worked additional

hours, about 23 percent applied for a loan from their retirement savings. About 22 percent made

late payments or do not made them. Near 21 percent used their credit cards to make payments or

to by food. Around 15 percent took a loan from a savings and loans institution, bank or other

financial institution. About 10 percent sold some belongings and 6.2 percent pawned them. Some

other participants, about 6 percent respectively, used a line of credit, a bank overdraft or took a

loan from an informal source.

Lastly, question 28 asked about home mortgage debt. Only those who had a home

mortgage were asked to answer this question. Out of 146 participants, 59 answered it. This

group represents about 40 percent of the sample. About 19 percent of the respondents state that

they can pay the balance of their mortgage today using their savings. Another 19 percent thinks

they will not be able to pay out their mortgage in their lifetime. Near 14 percent makes

additional payments other than the monthly payment to reduce the balance of their mortgage.

About 10 percent have solicited a reduction on their monthly payment or the postponement of

the next monthly payment. There are two different groups of respondents that separately

represent 3.4 percent of those having a mortgage, which failed to make a mortgage payment and

did not ask the bank for a special arrangement or stated that if they were to sell their home they

might not be able to pay out the balance. Approximately, 34 stated that none of the alternatives

applied to their home mortgage situation.

Questions 16 and 17 address savings. The former asks the participant whether during the

past 12 months he or she has saved in any of the listed alternatives. About 58 percent deposited

in their savings account but about 22 percent have not saved. Near 21 percent saved money but

keeps them in their house or wallet. Around 8 percent saved in an informal savings club. Only 4

percent invested in financial instruments such as stocks or bonds and 3 percent reinvested their

income from their savings. About 2 percent gave money to family members so the save it in their

name. Of the rest, 5.5 percent refused to answer and 0.7 percent was not aware of this matter.

In question 17, the participants were asked for how long they might be able to cover their

basic needs without borrowing money or leaving their home if they were to lose their job or main

source of income. Almost 29 percent stated that they might cover those expenses for at least one

month but for less than three months. About 16 percent might cover them for less than one

week. Around 15 might cover those expenses for at least three months but for less than six

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months. Another 15 percent assures that they might cover them for more than six months.

Approximately, 10 percent can cover their expenses for at least one week but not for a month.

Near 10 percent of the participants do not for how long they can cover them. The rest refused to

answer or left it blank.

A series of questions were included in order to test the financial skills of the participants.

Question 18 tested basic mathematical skills, in this case division. Around 80 percent of the

participants answered correctly. Almost 8 percent refused to answer. About 3 percent stated that

that they do not know the answer. The rest offered wrong or irrelevant responses. Question 19

addressed their knowledge about inflation and its effect on the value of money. Approximately

29 percent answered that if inflation goes up 4 percent, in one year, the value of money will

decrease and, as a consequence, less can be bought. About 21 percent answered that they do not

know the answer. There is almost 16 percent of the respondents that answered that the can buy

the same and another 16 believes that it will depend on the kind of things that you want to buy.

A small group of 5.5 percent answered that they will be able to buy more things. The rest of

them refused to answer, left it blank or offered an irrelevant response.

Question 20 also addressed financial skills from the standpoint of calculating interests.

Near 75 percent of the respondents answered it correctly. Almost 14 percent answered that they

do not know. About 8 percent refused to answer and the rest left it blank or offered an irrelevant

question. However, question 21 is also related to the calculation of interests and its

accumulation in a savings account and the results indicate a lack of knowledge in this matter.

Just 46 percent answered it correctly. Near 26 percent stated that they do not know the answer.

About 16 percent refused to answer; near 3 percent offered an irrelevant response; and 10

percent offered an incorrect answer.

The last question that assessed their financial skills was related to compounded interest.

Approximately, 30 percent answered it correctly. Another 25 percent selected an alternative that

might be considered correct if the respondent rounded to the nearest dollar. However, about 21

percent responded that they do not know the correct answer. Almost 7 percent answered it

incorrectly or thinks there is not enough information to answer it. Around 14 percent refused to

respond and the rest left it blank or offered an irrelevant response.

Retirement Planning Questions

Questions 29 to 37 asked about the appropriate age to start planning financially on retirement,

time left for their retirement and different aspects to consider when planning for retirement.

Question 29 asked about the ideal age to start planning for retirement. On average, the

respondents believe that a person should start when they are 25 years old. About 26 percent that

people should start planning before they are 20 years old. Approximately, 34 percent thinks that

a person should start between 21 and 25 years old. Another 9 percent considers that the

appropriate age is between 26 and 30 years old. Near 15 percent answered that they do not

know. Interestingly, 4.8 percent thinks that a person should start planning after they are 46 years

old. About 4.2 percent believes that starting between 31 and 45 is adequate. Near 7 percent

refused to answer and the rest left it blank.

Question 31 asked the respondent if he or she and/or their family have tried to determine

how much they need to save for retirement. Almost 58 percent responded that they have not

tried and only 28 percent have tried. About 6 percent do not know and another 6 percent refused

15

to answer. Less than 1 percent did not understand the question and less than 3 percent did not

answer. Respondents may skip questions 32 to 36 if they chose an alternative other than the one

that reflects that they have tried to calculate how much to save for retirement. Questions 32

asked how they tried to estimate that amount. Of the respondents to these question, about 31

percent used calculators, computer based spreadsheets or tools available through the Internet.

Another 20 percent talked to family members or relatives. Near 11 percent asked friends or co-

workers and another 11 percent consulted a financial planner, consultant or accountant. Some

used different sources, 4.4 consulted family, relatives, friends and co-workers. Another 2.2

percent asked family and relatives, used financial tools (calculators and spreadsheets), and

consulted specialists (financial planners and accountants). About 2 percent consulted family,

relatives, friends and co-workers and used financial tools. The rest do not know how to do it, do

not want to know, refused to answer or left it blank.

Out of these respondents, only 43 percent answered in question 33, that they have

developed a plan for retirement. More than 51 percent have not. And the rest either refused to

answer or left it blank. In question 34, of those who have developed a plan, 38 percent answered

that they have achieved their goals. Almost 46 percent answered that they have met their

retirement plan goals most of the time. However, about 10 percent have met them occasionally

and almost 5 percent have never met them. The rest refused to answer the question.

Question 35 inquired about the elements that are included in the respondent‟s plan.

Almost 86 percent includes a governmental retirement plan or benefits for the elderly. About 21

percent considers a retirement plan from an employer in the private sector. Near 37 percent have

personal savings for retirement. Approximately, 8 percent plan on taking a reverse mortgage.

That same percent plans on having a business. More than 6 percent plans on moving to a smaller

place and 3.2 percent on moving to a cheaper place. Near 6 percent plans on depending on their

partner and another 6 percent plans on earning an income during retirement. About 3.2 percent

plans on selling their non financial possessions (cars, jewelry, collections, etc.) and about 5

percent plans on selling their financial assets. Near 2 percent will depend on their descendents.

The rest answered that they include other things such as renting some properties they have and

live insurance.

Question 36 required for the respondent to consider his or her response to question 35 in

order to answer it. It inquired about the respondent‟s confidence in relation to maintaining their

desired standard of living during retirement. Only 14 percent are very confident, around 60

percent are more or less confident, almost 18 percent are not very confident and almost 5 percent

are not confident at all. About 1.6 percent does not know and the rest of the respondents refused

to answer or left it blank.

Finally, in question 37, all the participants were asked what factors are necessary if

anyone is trying to plan on retirement. About 77 percent thinks that the time left for retirement is

important. About 59 percent included current savings, near 47 percent included eligibility for a

government sponsored plan, about 22 percent included return on investments, near 68 included

benefits on retirement plans, about 21 percent included working during retirement, almost 49

percent included the desired standard of living, 63 percent included the costs expected to incur

during retirement, almost 45 included life expectancy, another 27 percent included the value of

assets at the time of retirement, 42 percent included current costs of living and about 45 percent

included whether you own a property or not. About 2 percent answered that other elements

should be included but did not offer examples. Near 4 percent refused to answer.

16

CONCLUSION

At this stage of the study, the results suggest a lack of knowledge in financial and retirement

planning, although respondents answered they look for information regarding financial and

retirement matters. These results concur with Lusardi and Mitchell (2006). Most of them state

that they prepare a household budget but when asked if they have covered their living expenses

during the past 12 months, most answered they have not. They had to cut expenses or used part

of their savings. Incongruous results are observed when asked about savings. The majority

answered they have saved in the last year. But when asked how long will they be able to keep

covering their living expenses if they were to lose their jobs, about 80 percent will be able to do

it for less than three months. Many respondents are unfamiliar with even the most basic

economic concepts needed to make savings and investment decisions.

When asked about retirement, near 60 percent have tried to estimate the amount needed for

retirement but less than 50 percent of the respondents have tried to design a plan for their


percent are very confident that they will have enough resources at retirement. Most of them

expect to depend on their government sponsor pension plan.

These results reflect lack of knowledge and planning and/or mistaken plans. Apparently,

there is a need to create conscience about the importance of knowing how to adequately manage

financial matters and how to prepare for the years to come during retirement.

As an observation, while administering the questionnaire, when the respondents were asked

to perform basic mathematical operations, they just refused. They did not want to think about

how to solve the operation. This attitude towards analytical or mathematical operations made us

think about the possibility that people do not want to engage in simple or elaborate calculations,

and if this was the same attitude when signing a debt contract or when making their budget.

The results at this point are worrisome. If people think they know how to manage their

financial and retirement matters but they are actually not being successful, who is going to care

of them during retirement? The government, future generations, or will they live in poverty?

No cross tabulation was performed at this point, since the study has not ended. The next

steps will include an examination of relationships between gender, age, educational levels and

financial and retirement knowledge (Lusardi and Mitchell 2008, 2011a, 2011b and Bucher and

Koenen, 2011).

17

Appendix

Questionnaire Results

(Spanish Version)

A continuación se presenta una serie de preguntas relacionadas a asuntos financieros. Al

contestar considere su conocimiento, experiencia y juicio personal.

1) Género

a) Masculino 25.5%

b) Femenino 74.5%

3) ¿Cuál es su estatus marital?

a) Casado(a) 39%

b) Soltero(a) 32.2%

c) Separado(a)/divorciado(a) 17.1%

d) Convive 6.2%

e) Viudo(a) 0.0%

f) No sé 0.7%

g) Se rehusó a contestar 4.8%

4) ¿Cuántas de las personas que viven en su hogar tienen menos de 18 años?

Escriba el número ______

0 personas 64.4% 1 persona 15.8% 2 personas 12.3% 3 personas 2.7%

a) No sé 0.0%

b) Se rehusó a contestar 4.8%

5) ¿Cuántas de las personas que viven en su hogar tienen 18 años o más, incluyendo a su pareja? Por

favor, no se incluya.

Escriba el número ______

0 personas 15.7% 1 persona 31.5% 2 personas 28.8% 3 personas 17.8%

4 personas 2.7% 5 personas 0.7% 6 personas 0.7%

a) No sé 0.0%


18

6) ¿Quién es responsable de tomar las decisiones sobre dinero del día a día en su hogar?

a) Usted 39.7%

b) Usted y su pareja 39%

c) Usted y otro(s) miembro(s) de la familia 11%

d) Su pareja 0.0%

e) Otro(s) miembro(s) de la familia 8.9%

f) Otra persona 0.7%

g) Nadie 0.0%

h) No sé 0.7%

i) Se rehusó a contestar 0.0%

7) Piense en su familia, en su hogar, ¿tienen un presupuesto familiar?

a) Si 63.7%

b) No 30.8%

c) No sé 3.4%

d) Se rehusó a contestar 2.1%

8) ¿Ha escuchado sobre

los siguientes productos

financieros?

9) ¿Posee alguno de estos

productos (personalmente o

en conjunto)?

10) En los pasados dos

años, ¿ha seleccionado

y/o poseído alguno de

estos productos?

(personalmente o en

conjunto) (Por favor,

no incluya productos

que se han renovado

automáticamente).

Si No Blanco Si No Blanco Si No Blanco

Un fondo de pensión 72.6% 21.9% 5.5% 43.8% 52.1% 4.1% 11.6% 69.2% 19.2%

Una cuenta de

inversión, como un

fideicomiso (unit trust)

47.3% 48.0% 4.8% 2.1% 94.5% 3.4% 2.1% 82.2% 15.7%

Una hipoteca 74.7% 19.2% 6.1% 54.1% 41.8% 4.1% 20.6% 61.6% 17.8%

Un préstamo con

garantía (distinto a la

hipoteca, o sea, la

garantía es distinta de

su hogar)

56.1% 39.0% 47.9% 11.6% 84.9% 3.4% 4.1% 80.8% 15.1%

Un préstamo bancario

sin garantía 55.5% 39.7% 4.8% 9.6% 87.0% 3.4% 8.0% 76.0% 15.8%

Una tarjeta de crédito 82.2% 13.0% 4.8% 65.8% 30.8% 3.4% 29.4% 54.8% 15.8%

Una cuenta corriente 80.1% 15.1% 4.8% 79.5% 17.1% 3.4% 32.9% 50.7% 16.4%

Una cuenta de ahorros 82.2% 13.0% 4.8% 69.2% 27.4% 3.4% 30.1% 54.8% 15.1%

Préstamo en financiera 73.3% 21.9% 4.8% 10.3% 86.3% 3.4% 4.8% 80.1% 15.1%

19

Seguros 76.7% 17.8% 5.5% 54.8% 41.8% 3.4% 21.9% 63.7% 14.4%

Acciones o

participaciones en

negocios de individuo o

sociedad

59.6% 35.6% 4.8% 17.8% 78.8% 3.4% 8.2% 76.0% 15.8%

Bonos 54.8% 37.7% 7.5% 8.2% 86.3% 5.5% 5.5% 76.7% 17.8%

Cuenta de teléfono

celular 82.3% 13.0% 4.8% 79.5% 16.4% 4.1% 41.8% 43.8% 14.4%

Tarjeta de prepago 42.3% 31.5% 6.2% 12.3% 83.6% 4.1% 10.3% 75.3% 14.4%

No sé la contestación a

las preguntas en su

totalidad

0.7% 99.3% 0.7%

99.3% 1.4% 98.4%

Se rehusó a contestar

las preguntas en su

totalidad

4.1% 95.9% 1.4% 98.6% 10.3% 89.7%

Anote si el encuestado

no ha

escuchado/tiene/escogió

sobre algunos de los

productos mencionados

100.0% 100.0% 100.0%

11) ¿Cuál de las siguientes aseveraciones describe mejor cómo seleccionó alguno de los

productos al que contestó SI en la tabla anterior?

a) Consideré varios (use la palabra que aplique: productos/préstamos/

b) políticas/cuentas) de distintas instituciones o compañías antes de tomar

la decisión 62.3%

c) Consideré varios (productos/préstamos/políticas/cuentas) de una

institución o compañía 14.4%

d) No consideré ningún otro(s) (productos/préstamos/políticas/cuentas)

6.8%

e) Busqué pero no encontré otro(s)

(productos/préstamos/políticas/cuentas) que pudiera haber considerado

al momento de tomar la decisión 0.7%

f) No sé 4.8%

g) No aplica 6.8%

h) Se rehusó a contestar 3.4%

No marcó contestación 0.7%

12) ¿Y qué fuentes de información piensa que influyeron más en la decisión que tomó?

1. Información específica del producto

a) Información recibida por correo que NO había solicitado 6.2%

b) Información que busqué en una sucursal 33.6%

c) Información específica del producto que encontré en Internet 17.1%

20

d) Información de los representantes (vendedores/oficiales) que trabajan

para la entidad que vende los productos (incluyendo precios) 43.8%

2. Guías u orientación sobre la mejor opción de producto(s)

e) Tablas publicadas en periódicos o revistas financieras sobre los mejores

productos disponibles en el mercado 28.1%

f) Información en la Internet sobre los mejores productos disponibles

28.8%

g) Revistas o publicaciones especializadas 8.9%

h) Recomendación hecha por un especialista o corredor de inversiones

independiente (broker) 14.4%

3. Asesoría general

i) Consejos de amigos/parientes (que NO trabajan en la industria

financiera) 44.5%

j) Consejos de amigos/parientes (que trabajan en la industria financiera)

29.5%

k) Asesoría del patrono 2.7%

4. Cobertura a través de medios de comunicación

l) Artículos en el periódico 50.0%

m) Programas de televisión o radio 30.8%

5. Anuncios

n) De periódicos 42.5%

o) De televisión 24.7%

p) Otro tipo de anuncios 15.1%

6. Otro

q) Mi experiencia previa 39.0%

r) Otra fuente(s) 24.0%

s) No sé 2.1%

t) No aplica (no he tomado decisiones recientemente) 8.2%

u) Se rehusó a contestar 7.5%

21

13) Voy a leer unas aseveraciones sobre conducta y actitud. Me gustaría saber cuán de acuerdo o

desacuerdo está con que estas aseveraciones están relacionadas a usted.

Por favor, dígame en una escala del 1 al 5, en donde 1 significa “estoy completamente de acuerdo” y 5

significa “estoy completamente en desacuerdo”.

1 2 3 4 5

Estoy Estoy

complemente complemente

de acuerdo ---------------------------------------------------------------------> en desacuerdo

_____ 1. Antes de comprar algo tomo en consideración cuidadosamente si tengo el dinero suficiente para

comprarlo.

Puntuación: 76.7% 1 8.9% 2 6.9% 3 2.7% 4 1.4% 5 3.4% No contestó

_____ 2. Tiendo a vivir el presente y que el futuro se encargue de los demás.


_____ 3. Considero más satisfactorio gastar mi dinero que ahorrarlo para el futuro (largo plazo)


_____ 4. Pago mis cuentas a tiempo


_____ 5. Estoy listo(a) para arriesgar parte de mi dinero cuando ahorro o invierto


_____ 6. Presto mucha atención a mis asuntos financieros


_____ 7. Establezco metas financieras de largo plazo y me propongo alcanzarlas


_____ 8. El dinero existe para gastarlo


22

14) Algunas personas entienden que su ingreso no necesariamente cubre sus costos de vida. ¿Entiende que

le ha ocurrido esto en los pasados 12 meses?

a) Si 64.4%

b) No 28.1%

c) No sé 2.7%

d) No aplica (No tengo ingreso personaI) 0.0%

e) Se rehusó a contestar 2.7%

Contestación irrelevante 0.7%


15) ¿Qué hizo para satisfacer o cumplir con sus necesidades básicas la última vez que ésto ocurrió? ¿Hizo

algo más? Marque todas las que considere apropiadas.

1. Con los recursos existentes

a) Retiré dinero de ahorros o hice transferencia de ahorros a la cuenta corriente 34.9%

b) Rocorté gastos, gasté menos o no incurrí en el (los) gastos 67.1%

c) Vendí alguna de mis pertenencias 10.3%

2. Creando recursos

d) Trabajé horas extra, gané dinero adicional 28.8%

3. Acceso a crédito usando contratos o recursos existentes

f) Tomé prestado a mi jefe/obtuve salarios por adelantado 2.1%

g) Empeñé alguna de mis pertenencias 6.2%

h) Tomé prestado de mi cuenta de la cooperativa “savings and loans clubs” 14.7%

i) Tomé dinero de una cuenta de hipoteca flexible 0.0%

j) Solicité un préstamo/retiré fondos del plan de retiro 22.6%

4. Tomar prestado de una línea de crédito existente

k) Usé una línea de crédito o de sobregiro autorizada 5.5%

l) Usé una tarjeta de crédito para retirar dinero o pagar las facturas/comida 20.5%

5. Acceso a una nueva línea de crédito

m) Obtuve un préstamo personal de una institución financiera (incluye bancos, cooperativas,

financieras) 15.1%

n) Tome un prestado del salario que me pagarán en el futuro 0.0%

o) Tomé prestado a un prestamista informal 5.5%

23

6. Rezago/gastar más de la cantidad acordada

p) Usé sobregiro no autorizado 0.7%

q) Pagué tarde mis facturas; fallé en hacer algunos pagos 21.9%

7. Otras respuestas

r) Otro 11.0%

s) No sé 4.1%

t) Se rehusó a contestar 8.9%

16) Durante los pasados 12 meses, ¿ha ahorrado dinero de alguna de las siguientes maneras (aunque

actualmente tenga o no tenga el dinero)?

Puede seleccionar más de una.

a) Ahorré en efectivo guardado en casa o en la cartera 20.5%

b) Aumente mi balance en la cuenta bancaria con lo que gané en la reinversión de intereses

3.4%

c) Deposité en mi cuenta de ahorros 58.2%

d) Le di dinero a familiares para que los ahorren en mi nombre 2.1%

e) Ahorré en un club de ahorros informal 8.2%

f) Compré productos financieros de inversión (distinto de mi plan de retiro o fondo de pensión)

como bonos, fideicomisos de inversión, acciones o participaciones en negocios individuales o

en sociedad) 4.1%

g) De otra forma (incluye compra de ganado o propiedades) 0.0%

h) No he ahorrado activamente (“no ahorro”/”no tengo dinero para ahorrar”) 21.9%

i) No sé 0.7%

j) Se rehusó a contestar 5.5%

17) Si perdiera su fuente de ingreso principal, ¿por cuánto tiempo podría continuar cubriendo sus gastos

básicos sin tener que tomar prestado o mudarse de su hogar?

a) Menos de una semana 16.4%

b) Al menos una semana, pero menos de un mes 10.3%

c) Al menos un mes, pero menos de tres meses 28.8%

d) Al menos tres meses, pero menos de seis meses 15.1%

e) Más de seis meses 15.1%

f) No sé 9.6%



24

18) Imagine que cinco hermanos reciben un regalo de $1,000. Si tienen que dividir el dinero en partes

iguales, ¿cuánto recibirá cada uno?

Respuesta numérica ______

Contestaciones:

$20 1.4%

$167 0.7%

$200 80.1%

$500 0.7%

$1,000 0.7%

$2,000 1.4%

Dejó en blanco 1.4%

a) No sé 2.7%


c) Su contestación es irrelevante 3.4%

19) Ahora imagine que los hermanos esperan un año para recibir su parte de los

$1,000 y la inflación permanece en 4 por ciento. Al cabo del año ellos podrán comprar:

a) Más de lo que podrían comprar si lo usan hoy; 5.5%

b) Lo mismo; 15.8%

c) O, menos de lo que podrían comprar hoy. 28.8%

d) Depende del tipo de cosas que quieran comprar 15.8%

e) No sé 21.2%

f) Se rehusó a contestar 7.5%

g) Su contestación es irrelevante 1.4%


20) Suponga que le presta $25 a un amigo y que al otro día le paga los $25.

¿Cuánto pagó su amigo en intereses sobre este préstamo?


Contestación númerica: 0 74.7%

a) No sé 13.7%



Dejó en blanco 1.4%

25

21) Suponga que deposita $100 en una cuenta de ahorros con interés garantizado de 2% anual. Usted no

deposita cantidades adicionales a la original y tampoco hace retiros de fondos. ¿Cuánto dinero habrá en su

cuenta al finalizar el año, una vez se hace el pago de interés?


Contestaciones:

$2.35 0.7% $20 0.7% $24 0.7% $100 0.7% $102 46.2% $120 2.8%

$124 1.4% $200 1.4% Dejó en blanco 1.4%

a) No sé 25.5%



22) ¿Y cuánto dinero habrá en la cuenta al cabo de cinco años?

Serán:

a) Más de $110 30.1%

b) Exactamente $110 24.7%

c) Menos de $110 4.8%

d) Es imposible contestar con la información provista 2.1%

e) No sé 21.2%


g) Su contestación es irrelevante 1.4%


23) ¿Me podría decir su edad?

Escriba la edad _____

Edad promedio 43.3 años

a) Se rehusó a contestar 6.2%

24) De lo contrario, ¿podría decirme en cuál de estos intervalos de edades se encuentra usted?

a) 18-19 0.0%

b) 20-29 13.7%

c) 30-39 17.1%

d) 40-49 26.0%

e) 50-59 34.2%

f) 60-69 2.1%

g) 70-79 0.7%



26

25) ¿Cuál es el grado académico más alto que ha alcanzado?

a) Educación universitaria:

9% Grado Asociado 41.7% Bachillerato 24.3% Maestría 11.1% Doctorado

b) Educación técnica/vocacional más allá de la escuela secundaria 1.4%

c) Completé la escuela secundaria 4.9%

d) Obtuve alguna educación después de la escuela secundaria 0.0%

e) Completé la escuela elemental 0.0%

f) Completé algunos grados de escuela elemental 0.0%

g) No tengo educación formal 0.0%


Contestación no es relevante 1.4%


26) ¿Quién es el dueño de la propiedad que habita?

a) Usted (y/o su pareja) son los dueños 68.5%

b) Usted la comprará al obtener un préstamo para un hogar o hipoteca 1.4%

c) Usted alquila la propiedad a un dueño privado 4.2%

d) Usted alquila la propiedad al gobierno 0.0%

e) Sus padres/abuelos/otro miembro de la familia 21.7%

f) Su patrono 0.0%

g) Otra persona o entidad que no se incluye entre las alternativas anteriores. 0.7%

h) No sé 0.0%


27) ¿Cuál es la fuente principal de ingreso en su hogar?

a) Sueldos o salarios 84.2%

b) Ingreso por autoempleo o las ganancias de un negocio 1.4%

c) Subsidio gubernamental 0.7%

d) Ingreso de pensiones/retiro 2.7%

e) Transferencias de miembros de la familia (que no viven en la misma propiedad) 0.0%

f) Transferencias de otra persona que no vive en la propiedad 0.0%

g) Otro 1.4%

h) No sé 0.0%


Seleccionó las alternativas a y d 5.5%


27

Ignore la siguiente pregunta si NO tiene una hipoteca.

28) Cuando piensa en su vivienda principal, ¿cuál de las siguientes aseveraciones le aplica?

a) Puedo pagar el balance pendiente de pago de mi hipoteca hoy mismo con mis ahorros 8.0%

b) No creo que pueda saldar mi hipoteca en algún punto de mi vida 8.0%

c) En ocasiones hago pagos adicionales para reducir el balance que debo 5.8%

d) En ocasiones no hago los pagos de la hipoteca y no hago acuerdos con el banco al respecto

1.4%

e) En ocasiones solicito al banco con el que tengo mi hipoteca una reducción en la mensualidad o

la posposición del pago para el próximo periodo 3.6%

f) Si vendo mi casa al valor en el mercado no puedo saldar el balance de mi

hipoteca 1.4%

g) Ninguna aplica 14.5%


29) ¿A qué edad entiende que una persona debe comenzar a planificar financieramente para el retiro?

Edad (valor numérico) ______

Contestación: Edad promedio 25 años

a) No sé 14.5%


Contestaciones: 25.5% Antes de los 20 33.8% Entre 21 y 25 9.0% Entre 26 y 30

0.7% Entre 31 y 35 1.4% Entre 36 y 40 2.1% Entre 41 y 45

4.8% Después 46 1.4% Dejó en blanco

30) ¿Cuántos años faltan para poder acogerse al retiro?

Contestación: Tiempo promedio para retiro 13.2 años

14.4% Entre 0 y 5 6.8% Entre 6 y 10 25.3% Entre 11 y 15 34.2% Entre 16 y 20

8.9% Entre 21 y 25 0.7% Entre 26 y 30 1.4% Más e 30 6.8% Nunca

1.4% No contestó

31) ¿Ha intentado, usted y/o su familia, determinar cuánto necesita ahorrar para su retiro?

a) Si 28.1%

b) No (pase a la pregunta 33) 57.5%

c) No sé (pase a la pregunta 33) 5.5%

d) No entiendo la pregunta (pase a la pregunta 33) 0.7%

e) Se rehusó a contestar (pase a la pregunta 33) 5.5%


28

32) ¿Cómo ha tratado de determinar cuánto necesita ahorrar para el retiro?

a) Hablando con familiares o parientes 6.2%

b) Hablando con compañeros de trabajo o amigos 3.4%

c) Usando calculadoras, hojas de cálculo computadorizadas o herramientas de cálculo en la

Internet 9.7%

d) Consultando con un planificador financiero, asesor o contador 6.2%

e) No me interesa saberlo 0.7%

f) No sé cómo hacerlo 0.7%



33) ¿Ha desarrollado un plan para su retiro?

a) Si 43.2%

b) No (pase a la pregunta 37) 51.4%

c) No sé (pase a la pregunta 37) 0.0%

d) No entiendo la pregunta (pase a la pregunta 37) 0.0%

e) Se rehusó a contestar (pase a la pregunta 37) 4.1%


Las preguntas 33 a la 36 sólo le aplicaban a 63 de los encuestados. Las proporciones se calcularon a base

del total de contestaciones.

34) ¿Ha logrado cumplir con ese plan?

a) Si, siempre 38.1%

b) La mayor parte de las veces 46.0%

c) En pocas ocasiones 9.5%

d) Nunca 4.8%

e) No entiendo la pregunta 0.0%


35) Por favor indique cuál de los siguientes elementos está incluido en su plan de retiro.

(Puede marcar más de una.)

a) Plan de retiro gubernamental/beneficios para envejecientes 85.7%

b) Beneficios del plan de retiro de mi trabajo empresa privada 20.6%

c) Beneficios de mis ahorros personales para el retiro 36.5%

d) Obtener una hipoteca inversa (reverse mortgage) 7.9%

e) Mudarme una propiedad más pequeña en el mismo área 6.3%

f) Mudarme a un área más económica 3.2%

g) Veder mis instrumentos financieros o cartera de inversión (acciones, bonos y/o fondos mutuos)

4.8%

h) Vender mis activos no financieros (carros, joyería, antigüedades, otras) 3.2%

29

i) Usar mi herencia 0.0%

j) Depender de mi cónyuge 6.3%

k) Depender de mis hijos 1.6%

l) Depender del apoyo financiero que me ofrezca mi familia extendida 0.0%

m) Obtener ingresos de mi negocio propio 7.9%

n) Ingreso de empleo durante mi retiro6.3%

o) Otros (especifíque) 3.2%

p) No sé 0.0%

q) Se rehusó a contestar 0.0%

36) Tomando en consideración las fuentes de ingresos que seleccionó en la pregunta anterior, ¿cuán

confiado está en que pueda mantener el estándar de vida deseado durante su retiro?

a) Muy confiado 14.2%

b) Bastante confiado 60.3%

c) No muy confiado 17.5%

d) Nada confiado 4.8%

e) No sé 1.6%


37) Por favor, dígame que factores debe tomar en consideración alguien que está tratando de calcular si sus

planes actuales son suficientes para su retiro en el futuro. (Puede marcar más de una.)

a) El tiempo que le falta para retirarse 77.4%

b) Los ahorros que tiene actualmente 58.9%

c) Elegibilidad para el plan de pensión o beneficios gubernamentales 46.6%

d) Rendimiento esperado de sus inversiones 21.9%

e) Beneficios del retiro o pensión 67.8%

f) Su intención de trabajar con paga durante su retiro 21.2%

g) El estándar de vida deseado durante su retiro 48.6%

h) Los costos que necesita cubrir durante su retiro 63.0%

i) Expectativa de vida 44.5%

j) Valor de los activos al momento del retiro 22.6%

k) El costo de vida actual 41.8%

l) Si es dueño de su propio hogar o no 45.2%

m) Otro (indique cuál) 2.1%

n) No sé 4.1%

o) No entiendo la pregunta 0.0%

p) Se rehusó a contestar 2.7%

30

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